A scathing report published last week about America’s “50 worst charities” – which includes three midstate charities – asserts that some organizations spend a large amount of money on for-profit fundraisers and paying solicitors rather than using donations on actual program services.

Mission: Assists children and their families dealing with the hardships of a cancer diagnosis.

Latest IRS 990 filing available: Filed in December 2011

Annual report on its website? The organization does not provide a link to its 990 filing on its website. Instead, it provides its own annual report which asserts more than 80 percent of total expenses go to program services.

What was found: At first glance, this organization – which the Tampa Bay Times included in its list of America’s “50 Worst Charities” – appears to use 81 percent of its total expenses on program services including outreach, financial assistance to children and their families and the organization’s gift delivery program.

After a closer look at where the program service expenses go, it’s revealed only about $682,099 of its nearly $12 million budget actually went to the gift program and financial assistance to families. In comparison, about $3.8 million was paid in 2011 to “community outreach services” – solicitors and telemarketers.

Greg Anderson, the founder of the foundation, responded to a request for comment by directing the public toward a statement posted on his personal blog. The statement alleges the Tampa Bay Times used flawed tactics in its report and stresses that the organization has never been sanctioned by a governmental authority. The rest of the statement can be found here.

2. Survivors and Victims Empowered (appeared in “50 worst” report)

Address: P.O. Box 8875

Lancaster, PA 17604

Mission: The organization was created to help prevent the criminal neglect and physical, emotional and sexual abuse of children and to help survivors of those childhood traumas in the recovery process.

What was found: This organization – also featured by the Tampa Bay Times as one of the nation’s “worst charities” – reports that about 29 percent of its total expenses go to program service expenses, whereas nearly 60 percent goes to fundraising expenses. Despite the organization’s stated mission, its only program service expense was funding a child protection website and a child protection e-newsletter.

In addition to a low percentage of expenses actually going toward program services, the organization spent about $650,000 on solicitation efforts such as telemarketing and similar campaigns. In addition, it’s reported by the Center for Investigative Reporting and the Tampa Bay Times that the charity was sued by the Pennsylvania attorney general twice – in 1993 and 1998 – for allegedly misleading donors.

A representative from Survivors and Victims Empowered did not respond to a phone message seeking comment Monday.

3. American Foundation for Children with AIDS (appeared in “50 worst” report)

Address: 6221 Blue Grass Ave.

Harrisburg, Pa 17112

Mission: The organization’s goal is to help HIV/ AIDS stricken children in sub-Saharan Africa who do not have access to aid. The charity gives medications, medical equipment, nutritional supplements, etc.

What was found: The organization appeared as No. 46 on the investigative report’s list of 50 worst charities because the Center for Investigative Reporting found that in the charity’s years as a young organization, it relied heavily on professional fundraisers.

It reports that between 2008 and 2011, the organization raised $4 million in donations, 76 percent of which went to for-profit fundraisers. While that is true, the organization appears to have ceased this practice and no professional fundraising efforts were reported in its most recent tax filing. The foundation vigorously objected to the report in a statement released to PennLive Sunday.

The organization did report that more than 92 percent of expenses in the last year went directly toward program services. All of those service expenses went to funding the shipment of medicine to Africa, a practice watchdogs say is tough to regulate.

4. Central Pennsylvania Food Bank

Address: 3908 Corey Road

Harrisburg, Pa 17109

Mission: The organization was created to fight hunger, improve lives and stregthen communities. It distributes food to locations across the region

What was found: The Central Pennsylvania Food Bank was rated a 65.96 out of 70 by Charity Navigator, which evaluates non-profits in terms of financial performance, accountability and transparency. The Central Pennsylvania Food Bank used more than 96 percent of its total functional expenses on program services and didn’t report spending funds on any for-profit professional fundraisers. It also reported that no independent contractors, like solicitors, were paid more than $100,000.

5. Ronald McDonald House Charities of Central PA

Address: 745 W. Governor Road

Hershey, Pa 17033

Mission: The organization provides free, temporary lodging, accommodations and assistance to out-of-town families of sick children receiving treatment at the Penn State Hershey Children’s Hospital.

What was found: The Ronald McDonald House Charities of Central PA reported that it used about 75 percent of its total functional expenses on its program services, which includes funding its 35-bedroom lodging area as well as grants to local charities. In 2011, the group made two grants – one to the Arc of York County and one to the American Red Cross in Harrisburg.

The organization didn’t report spending any funds on professional for-profit fundraisers and no independent contractors were paid more than $100,000.

6. Make-A-Wish Foundation of Philadelphia and Susquehanna Valley

Address: 1 Valley Square

Blue Bell, Pa 19422

Mission: The organization grants wishes to children with life-threatening diseases.

Latest IRS 990 filing available: Filed in August 2011 for fiscal year 2010.

Highest paid employee: Dennis Heron, president and CEO, made $180,677 in reportable compensation.

What was found: More than 85 percent of the foundation’s total functional expenses are used for program services which is solely granting the wishes of children with life-threatening illness. The organization didn’t report using any funds on for-profit fundraisers or to pay independent contractors or solicitors.

7. United Way of the Capital Region

Address: 2235 Millenium Way

Enola, PA 17025

Mission: The organization provides grants to other non-profit organizations around Dauphin, Perry and Cumberland Counties.

Latest IRS 990 filing available: Filed in March 2012 for fiscal year 2011.

Highest paid employee: Joseph Capita, executive director and CEO, made $192,144 in reportable compensation in 2011. He retired in January and was replaced by Timothy Fatzinger, whose salary was not immediately available late Monday afternoon.

What was found: The local chapter of United Way used about $10.6 million of its $12.2 million total expenses on program services, which figures out to be more than 86 percent. The charity was awarded a score of 65.58 out of 70 by Charity Navigator which evaluates based on financial performance, accountability and transparency.

The organization reported that it did not pay for-profit fundraisers and it didn’t pay any independent contractors more than $100,000 in fiscal year 2011.

8. Easter Seals Society of South Central Pennsylvania

(also operates as Easter Seals Central Pennsylvania)

Address: 383 Rolling Ridge Drive

State College, Pa

Facilities also located in Altoona, Chambersburg, Mechanicsburg, York and Waynesboro.

Mission: Easter Seals provides services to ensure that all people with disabilities or special needs and their families have equal opportunities to live, learn, work and play in their communities.

Highest paid employee: Carrie Ryan, former executive vice president and CFO, made $99,409 in reportable compensation. Note: The branch shares a CEO with the western Pennsylvania Easter Seals branch.

What was found: The organization based in State College uses about 80 percent of its total functional expenses on program services. It did not report spending any funds on for-profit fundraisers and it didn’t pay any independent contractors more than $100,000 in fiscal year 2011.

9. Central Pennsylvania Blood Bank

Address: 8167 Adams Drive

Hummelstown, Pa 17036

Mission: The organization provides blood supply in response to community needs. It coordinates the region’s blood and blood product supply.

Highest paid employee: Patrick Bardley, president and CEO, made $189,342 in reportable compensation.

What was found: The organization used about 96 percent of its total expenses on program services and didn’t report running any for-profit professional fundraisers. It did pay two independent contractors more than $100,000 – one was a local center for collecting blood and the other was a computer systems management firm.

10. The Arc of Dauphin County

Address: 2569 Walnut Street

Harrisburg, Pa 17103

Mission: The program provides services to people of all ages with intellectual and developmental disabilities.

What was found: The organization used about 82 percent of its total functional expenses on its program services, totaling about $1.2 million. The organization did not report holding any professional fundraisers and it didn’t pay out any independent contractors more than $100,000.

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